Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF:FSE) began a 60,000 meter (60,000m) drill program focused on the Surebet prospect at its Golddigger project in British Columbia's Golden Triangle, and early visual results are encouraging, reported Ronald Wortel, analyst with Zacks Small-Cap Research, in a June 7 coverage update. Zacks increased its target price on the Canadian gold and silver explorer by 14% based on expected drill results and recent financings.
"With a rapidly expanding footprint, exceptional high-grade results and near-term catalysts, the Surebet project is positioning Goliath Resources as a highly compelling and standout investment in the gold exploration market," Wortel wrote.
135% Return Potential
Zacks' new fair value target on Goliath is $4.04 per share, up from $3.54, noted the analyst.
"We see further upside supported by systematic exploration, strong technical execution and the high-impact potential of Surebet's emerging mineralized zones," added Wortel.
At the time of the analyst's report, Goliath is trading at about $1.72 per share. From here, the return to target is 135%.
Robust Drill Program
Wortel discussed Goliath's latest developments. Most recently, the company commenced a fully funded, 60,000m drill campaign at Golddigger, "one of the largest among its peers," the analyst wrote. Nine drill rigs will be turning at the site once the four being mobilized arrive on site; five already are there and active.
The original 2025 drill plan was for 40,000m, but Goliath increased it 50% after encountering widespread and abundant visible gold in multiple reduced intrusion-related gold dykes and, during the company's core relogging campaign, in the calc-silicate-altered breccia.
The main objectives of this summer's drilling are to expand the outline of the known gold-bearing shears, test the deep intrusive for potential resource grade mineralization and infill the higher-grade parts of the Surebet and Bonanza shears, so that a preliminary mineral resource estimate is possible.
"The company hopes to outline a zone of mineralization that could support the economics for future mine development on the project," Wortel wrote. "This aggressive campaign is expected to generate steady news flow, keeping the company visible in the market and helping to support continued share price momentum."
Results so far are encouraging, noted Wortel. For instance, hole GD-25-302, now being drilled, intersected a 96.5m mineralized interval containing six instances of visible gold, likely indicating high grades. This hole will test the potential of the modeled Mother Lode intrusion, potentially a new major discovery horizon.
"A positive result would add a significant upside to the company's current resource potential," noted Wortel.
Expanding Underground Access
The analyst reported that Goliath engaged JDS Energy & Mining Inc. to evaluate developing an underground adit at Golddigger to give direct access to the high-grade Bonanza zone, to enhance understanding of the geology and to allow for year-round underground drilling.
"This move marks a key step toward advancing Golddigger from exploration to potential development," wrote Wortel.
Millions in Funds Raised
Goliath raised CA$27 million (CA$27M) gross through a recently closed bought-deal financing and a concurrent nonbrokered financing, Wortel noted. The latest round attracted a new institutional shareholder Waratah Capital Advisors that manages about $3.8 billion in assets.
"These numbers are a strong indicator of the market interest in this story," added the analyst.
Since Zacks' last update on it, Goliath raised more than CA$40M at premiums.
Ownership and Share Structure
Also during that time, the issuance of shares and warrants changed Goliath's capital structure, reported Wortel. Ownership now looks like this: members of the board and management have 20.4%;, Crescat Capital has 12.2%, institutional and strategic owners have 9.9%, Global Commodity Group has 5%, McEwen Mining Inc. (MUX:TSX; MUX:NYSE) has 4.8%, Waratah has 4.3%, Rob McEwen has 3.2%, Eric Sprott has 2% and Larry Childress has 1%.
Goliath has 161.7 million shares outstanding. Its market cap is $278.1M. Its 52-week range is $0.67–2.016 per share.
Upcoming Catalysts
Wortel indicated that a constant news flow of various results is expected throughout the summer and into next year. Early on, more findings should be released from the ongoing core relogging program, recently increased to 75 holes from 50, covering 3,390m.
From the summer 2025 drill program, additional visual results, potentially returning significant intersections, as well as new zone discoveries at Surebet, are expected. Finally, drill results should be announced as they become available, starting in late summer and continuing throughout the rest of 2025 and into next year.
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